The three most valued tech Financing expressed interest in OpenAI’s most recent fundraising round, demonstrating the startup’s significance to the industry as a whole.
According to people familiar with the situation, Nvidia Corp., the largest chipmaker in the world, has talked about participating in a funding round that would value OpenAI at over $100 billion. The individuals, who wished to remain secret due to the confidentiality of the discussions, stated that Apple Inc. and Microsoft Corp. had also been in discussions regarding taking part in the funding.
Thrive Capital, which is investing roughly $1 billion, will lead the planned round. A $100 million investment has been considered by Nvidia, according to two of the individuals.
Should the talks go, OpenAI, the company behind the ground-breaking ChatGPT chatbot, would have the support of three of the largest names in technology. In recent years, every company has become reliant on the startup. Microsoft has already contributed about $13 billion to OpenAI, making it the largest donor. Apple, which came late to the artificial intelligence game, is depending on OpenAI to help integrate AI into a future iteration of the iPhone operating system. And as the technologies it enables get more and more popular, so too will Nvidia.
Nvidia, Apple, Microsoft, OpenAI, and Thrive representatives all declined to comment.
Regulators in the US and the EU have expressed alarm about Nvidia’s supremacy in AI processors and Microsoft’s tight ties to OpenAI, as Big Tech’s influence over AI has come under increasing scrutiny. Microsoft has incorporated OpenAI’s services deeply into its Copilot AI and Windows platforms in an attempt to use the latter’s potential to spur expansion.
Apple and OpenAI already have a relationship. The creator of the iPhone is incorporating ChatGPT into its brand-new Apple Intelligence AI feature set. Along with Microsoft, the corporation was also scheduled to join the OpenAI board as an observer, but those plans were canceled in July.
Meanwhile, Nvidia provides the basic facilities required for the creation and operation of AI tools such as ChatGPT. It is the largest manufacturer of “AI accelerators,” whose sales have exploded in the last 24 months.
The most recent quarter’s revenue for Nvidia more than doubled to $30 billion, according to the company’s Wednesday announcement. Even though it exceeded average expert projections for sales in the current quarter, investors have become so used to blowout outcomes that the shares still dropped.
According to persons familiar with the situation, OpenAI Chief Financial Officer Sarah Friar informed staff members in a memo on Wednesday that the business was looking for new funding without providing any specifics. Since at least December, the company has reportedly been in talks to raise capital at a valuation of at least $100 billion.
Support from the funding would help one of the most valuable venture-backed firms in the world. Tech corporations are racing to incorporate AI technology into their businesses and are investing in other promising startups as a result of ChatGPT’s explosive success.
According to the people, Friar stated in her memo to the staff that OpenAI would use the funding to pay for additional running costs and the purchase of more processing capacity.
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